When you run your own business, there are hundreds, if not thousands of things that you need to take care of. And it’s a small business that you run, and then you may feel that there is no need for hiring a lawyer. However, here are so pretty strong reasons why you should hire a lawyer.
1. Compliance with Laws
Unless you are a lawyer specializing in business law, there are many legal aspects to running a business that you may not be aware of. An employment lawyer would be able to help you with remaining compliant with the various laws, such as state as well as Federal anti-discrimination laws, OSHA (Occupational Safety and Health Administration) laws, and even environmental laws.
2. Ensuring Corporate Governance
While a lot of businesses will use the services of a lawyer during the process of incorporation, new businesses do not realize that there are also continuous legal requirements to maintain the status of being incorporated. This is where a lawyer comes in handy. They will keep you informed about what you need to do to keep your incorporation status active.
3. Protecting Business Property
There are many assets that a business has that are intangible, such as your company name, logo, brand, and goods, and services created by you. These assets need to be protected through copyrights. Technology assets such as software, chip mask designs, etc. need to be protected by trademark registrations, and the creation of new processes, designs, etc. need to be protected by patents. A lawyer can help you protect what is rightfully yours.
4. Drafting Employment Contracts
A lawyer can also help you draft an employment contract that will benefit both you as well as the employee. Not just that, employee knowledge is one of the most important assets a company has. So, when an employee leaves, he walks away with that knowledge. An employee contract can incorporate non-disclosure agreements and non-compete agreements that will prevent an ex-employee from taking your key company secrets over to the competition.
5. Defend Against Litigation
If you or your business is being sued by either disgruntled employees, suppliers, or customers, then a lawyer can defend you against such litigation. If you hire a lawyer right at the onset of your business, then there are chances that you will rarely reach the stage of being sued by anyone, since one of the core jobs of that lawyer will be to keep you compliant with the law.
6. Strategies for Exit
When you start a new business in partnership with other parties, you aren’t thinking about how it will end. However, these are the realities of life. Things don’t work out, or there are other opportunities to explore, and one of the principals in your business decides to leave. When this happens, it can threaten the stability or even the existence of the entire business. Which is why it is necessary to have an exit agreement so that there are backups and plans in place to protect the business in case one or more of the principals want to quit the business.
When you’re starting a new business, the last thing on your mind is hiring a lawyer. After, most of us feel that we are too small to need their services. And there is also the question of cost. Budgets are extremely limited when you start a new business.
However, consider the impact of not hiring a lawyer to help you navigate murky legal waters. You could end up losing everything you have worked so hard to build. Isn’t it better to spend a little extra right at the beginning to protect your baby rather than lose it all because of an honest mistake?